OceanFirst Financial Corp.
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Press Release

Exhibit 99.1
Company Contact:


Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 7507
Email: pbarrett@oceanfirst.com

FOR IMMEDIATE RELEASE


OCEANFIRST FINANCIAL CORP.
ANNOUNCES RECORD QUARTERLY AND ANNUAL
EARNINGS AND FINANCIAL RESULTS


    RED BANK, NEW JERSEY, January 19, 2023 - OceanFirst Financial Corp. (NASDAQ:“OCFC”) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $52.3 million, or $0.89 per diluted share, for the quarter ended December 31, 2022, as compared to $37.6 million, or $0.64 per diluted share, for the prior linked quarter, and $21.7 million, or $0.37 per diluted share, for the corresponding prior year period. For the year ended December 31, 2022, the Company reported net income available to common stockholders of $142.6 million, or $2.42 per diluted share, as compared to $106.1 million, or $1.78 per diluted share, for the prior year. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):
For the Three Months Ended,For the Year Ended,
Performance Ratios (Quarterly Ratios Annualized):December 31,September 30,December 31,December 31,December 31,
20222022202120222021
Return on average assets 1.62 %1.19 %0.72 %1.15 %0.91 %
Return on average stockholders’ equity13.25 9.68 5.65 9.24 7.02 
Return on average tangible stockholders’ equity (a)
19.85 14.62 8.59 13.96 10.73 
Return on average tangible common equity (a)
20.97 15.47 9.09 14.76 11.37 
Efficiency ratio44.56 53.10 72.04 53.80 63.50 
Net interest margin3.64 3.36 2.99 3.37 2.93 
(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”), which are non-GAAP (“generally accepted accounting principles”) financial measures, exclude the impact of intangible assets and goodwill from both assets and stockholders’ equity. ROTCE also excludes preferred stock from stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.



Core earnings1 for the quarter and year ended December 31, 2022 amounted to $39.5 million and $138.0 million, respectively, or $0.67 and $2.34 per diluted share, an increase from core earnings of $28.5 million and $111.2 million, or $0.48 and $1.86 per diluted share, for the corresponding prior year periods. Non-core operations, net of tax, had a favorable impact of $12.7 million and $4.6 million for the quarter and year ended December 31, 2022, respectively. Non-core operations, net of tax, had an adverse impact of $6.8 million and $5.1 million for the quarter and year ended December 31, 2021, respectively.
Core earnings for the quarter ended December 31, 2022 increased $4.5 million from $35.0 million, or $0.60 per diluted share, for the prior linked quarter. Non-core operations, net of tax, had a favorable impact of $2.6 million for the prior linked quarter.
Core earnings PTPP for the quarter and year ended December 31, 2022 were $56.5 million and $190.7 million, respectively, or $0.96 and $3.24 per diluted share, as compared to $33.1 million and $133.1 million, or $0.56 and $2.23 per diluted share for the corresponding prior year periods. Selected performance metrics are as follows:
For the Three Months Ended,For the Year Ended,
December 31,September 30,December 31,December 31,December 31,
Core Ratios1 (Quarterly Ratios Annualized):
20222022202120222021
Return on average assets 1.22 %1.11 %0.95 %1.11 %0.95 %
Return on average tangible stockholders’ equity15.01 13.62 11.30 13.50 11.25 
Return on average tangible common equity15.86 14.40 11.96 14.28 11.92 
Efficiency ratio50.78 54.80 62.57 54.21 60.84 
Core diluted earnings per share$0.67 $0.60 $0.48 $2.34 $1.86 
Core PTPP diluted earnings per share0.96 0.81 0.56 3.24 2.23 

    


1 Core earnings and core earnings before income taxes and credit loss provision (“PTPP or Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net branch consolidation (benefit) expense, net loss (gain) on equity investments, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and credit loss provision (benefit). Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
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Key developments for the recent quarter are described below:
Net Interest Income and Margin Expansion: Net interest income increased by $10.5 million to $106.5 million, from $96.0 million in the prior linked quarter. Net interest margin increased to 3.64%, from 3.36% in the prior linked quarter, largely driven by the impact of the rising rate environment on interest earning assets and loan growth, partly offset by an increased cost of funds.
Loan Growth: Loan growth for the quarter was $199.3 million, reflecting loan originations of $684.1 million, while loan growth for the year was $1.30 billion, reflecting record loan originations of $3.09 billion for the year ended December 31, 2022.
Stockholders’ Equity per Common Share Growth: Stockholders’ equity per common share increased to $26.81, from $26.04 in the prior linked quarter. Tangible common equity per common share increased to $17.08, from $16.30 in the prior linked quarter, reflecting capital accretion from earnings growth and stable other comprehensive income.
Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to report exceptional financial performance for the fourth quarter and for the year driven by record net income and net interest income, net interest margin expansion, and continued loan growth. Throughout the challenging economic environment in 2022, OceanFirst has produced some of the strongest results in the history of our Company.” Mr. Maher added, “I am very proud of the entire team who worked tirelessly to serve our customers, to drive these results, and position OceanFirst to continue to deliver for our stockholders in 2023.”
As previously announced, in November 2022, the Company made an additional minority, non-controlling equity investment in Auxilior Capital Partners, Inc. (“Auxilior”), of $2.8 million as part of a
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new round of financing by the Company and other investors, in addition to the original $10.0 million investment the Company made in 2021. The new round of financing resulted in an unrealized gain of $17.5 million on the prior investments, which is included in other income for the quarter and year ended December 31, 2022.
The Company’s Board of Directors declared its 104th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on February 17, 2023 to common stockholders of record on February 6, 2023. The Board declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on February 15, 2023 to preferred stockholders of record on January 31, 2023.
Results of Operations
On April 1, 2022, the Company completed its acquisition of a majority interest in Trident Abstract Title Agency, LLC (“Trident”) and its results of operations are included in the consolidated results for the quarter and year ended December 31, 2022, but do not impact the results of operations for the period from January 1, 2021 to March 31, 2022. Refer to “Supplemental Information on Trident” for the impact of Trident on the Company’s consolidated results.
Net Interest Income and Margin
Net interest income for the quarter and year ended December 31, 2022 increased to $106.5 million and $377.5 million, respectively, as compared to $80.6 million and $305.3 million for the corresponding prior year periods, reflecting an increase in average interest-earning assets and net interest margin.
Net interest margin for the quarter and year ended December 31, 2022 increased to 3.64% and 3.37%, respectively, from 2.99% and 2.93% for the same prior year periods. Excluding the impact of purchase accounting accretion and prepayment fees of 0.10% and 0.18% for the quarter ended December 31, 2022 and 2021, respectively, net interest margin increased to 3.54% from 2.81%.
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Excluding the impact of purchase accounting accretion and prepayment fees of 0.11% and 0.17% for the year ended December 31, 2022 and 2021, respectively, net interest margin increased to 3.26% from 2.76%. Net interest margin for both the quarter and year ended December 31, 2022 were enhanced by the impact of the rising rate environment on interest earning assets and the redeployment of excess cash into loans, partly offset by an increased cost of funds and the growth of interest-bearing liabilities.
Average interest-earning assets increased by $899.7 million and $779.9 million for the quarter and year ended December 31, 2022, respectively, as compared to the corresponding prior year periods, primarily due to loan growth and, to a lesser extent securities growth, funded by the redeployment of excess cash and increased Federal Home Loan Bank (“FHLB”) advances. Average loans receivable, net of allowance for loan credit losses, increased by $1.47 billion and $1.40 billion, primarily in commercial loans, for the quarter and year ended December 31, 2022, respectively, as compared to the same prior year periods.
For the quarter and year ended December 31, 2022, the cost of average interest-bearing liabilities increased to 1.09% and 0.65%, respectively, from 0.40% and 0.49% for the corresponding prior year periods, as a result of higher costs associated with FHLB advances and interest-bearing deposits, including time deposits issued in an elevated rate environment in 2022. The total cost of deposits (including non-interest bearing deposits) was 0.53% and 0.31% for the quarter and year ended December 31, 2022, respectively, as compared to 0.20% and 0.26% for the same prior year periods. While costs of deposits have increased, deposit betas remain under 10% and are a fraction of the Company’s historical experience in the last rising interest rate cycle.
Net interest income for the quarter ended December 31, 2022 increased by $10.5 million, as compared to the prior linked quarter, reflecting an increase in net interest margin to 3.64%, as compared to 3.36% for the prior linked quarter. Excluding the impact of purchase accounting accretion and prepayment fees of 0.10% and 0.08% for the quarter ended December 31, 2022 and September 30, 2022, respectively, net interest margin increased to 3.54% from 3.28%. The expansion in net interest
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margin was primarily attributable to the impact of the rising rate environment on interest earning assets, loan growth and, to a lesser extent, loan payoffs impacting interest income. This was partly offset by an increased cost of funds and the expansion in FHLB advances to fund loan growth. Average interest-earning assets increased by $279.1 million for the quarter ended December 31, 2022, as compared to the prior linked quarter, primarily due to loan growth. The yield on average interest-earning assets increased to 4.46% for the quarter ended December 31, 2022, from 3.88% in the prior linked quarter, primarily due to the impact of the rising rate environment on interest earning assets. The total cost of average interest-bearing liabilities increased to 1.09% for the quarter ended December 31, 2022, as compared to 0.69% in the prior linked quarter, primarily due to higher costs associated with interest-bearing deposits and higher costs and balances of FHLB advances.
Credit Loss Expense (Benefit)
Credit loss expense for the quarter and year ended December 31, 2022, was $3.6 million and $7.8 million, respectively, as compared to credit loss benefit of $1.6 million and $11.8 million for the corresponding prior year periods, and a credit loss expense of $1.0 million in the prior linked quarter. The credit loss expense for the quarter and year ended December 31, 2022 was primarily influenced by loan growth, slowing prepayment assumptions, and increasingly uncertain macro-economic forecasts due to persistent inflation, interest rate increases, and global economic headwinds, partly offset by positive trends in the Company’s criticized and classified assets. The Company’s credit loss expense for the quarter ended December 31, 2022 increased from the prior linked quarter due to the heightened levels of uncertainty in macro-environment projections, despite the strength in the Company’s borrower performance and overall asset quality.
Net loan recoveries were $5,000 and $340,000 for the quarter and year ended December 31, 2022, respectively. Net loan recoveries were $19,000 and $461,000 for the quarter and year ended December 31, 2021, respectively. Net loan recoveries were $252,000 in the prior linked quarter. Refer to “Asset Quality” section for further discussion.
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Non-interest Income
    For the quarter and year ended December 31, 2022, other income increased to $27.6 million and $59.1 million, respectively, as compared to $9.4 million and $51.9 million for the corresponding prior year periods.
Other income for the quarter and year ended December 31, 2022 was impacted by non-core operations of $17.2 million and $9.7 million, respectively, related to net gains on equity investments, which included a $17.5 million unrealized gain on the Auxilior investment. The year ended December 31, 2022 included $8.9 million of net unrealized losses, mostly on preferred stock equity investments, primarily due to the impact of the rising interest rate environment. The preferred stock equity investments carried a weighted average yield of 5.1% and an amortized cost of $73.0 million at December 31, 2022. Other income for the quarter and year ended December 31, 2021 included net losses on equity investments of $1.3 million and net gains on equity investments of $7.1 million, respectively, which are considered non-core operations.
Excluding non-core operations noted above, other income decreased $298,000 for the quarter ended December 31, 2022, as compared to the corresponding prior year period. This decrease was primarily due to decreases in bankcard services of $1.9 million, primarily as a result of the Durbin amendment, which became effective for the Company on July 1, 2022, and commercial loan swap income of $804,000. These decreases were partly offset by the acquisition of a majority interest in Trident, which added $2.6 million primarily due to title-related fees and service charges.
Excluding non-core operations noted above, other income increased by $4.6 million for the year ended December 31, 2022, as compared to the prior year. The increase was primarily due to the impact of Trident, which added $10.4 million, mostly due to title-related fees and services charges, and an increase in commercial loan swap income of $3.0 million. These increases were partly offset by decreases in bankcard services of $4.1 million, primarily as a result of the Durbin amendment, net gain
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on sale of loans of $2.8 million, fees and service charges (excluding Trident) of $814,000, and Paycheck Protection Program loan origination referral fees of $800,000 recognized in the prior year.
    Excluding non-core operations of $3.4 million related to net gain on equity investments in the prior linked quarter, other income for the quarter ended December 31, 2022 decreased by $1.4 million, primarily due to a decrease in commercial loan swap income of $952,000.
Non-interest Expense
Operating expenses decreased to $59.7 million and increased to $234.9 million for the quarter and year ended December 31, 2022, respectively, as compared to $64.8 million and $226.9 million, for the same prior year periods. Operating expenses for the quarter and year ended December 31, 2022 were adversely impacted by $387,000 and $3.4 million of non-core operations, respectively. Operating expenses for the quarter and year ended December 31, 2021 were adversely impacted by non-core operations of $7.7 million and $13.8 million, respectively.
Excluding non-core operations, operating expenses increased by $2.2 million for the quarter ended December 31, 2022, as compared to the corresponding prior year period. This increase was partly due to the acquisition of a majority interest in Trident, which added $2.5 million of expenses for the quarter ended December 31, 2022. Other increases, excluding Trident, included professional fees of $2.0 million and compensation and benefits of $1.3 million, partly offset by a decrease in data processing expense of $3.2 million.
Excluding non-core operations, operating expenses increased by $18.4 million for the year ended December 31, 2022, as compared to the prior year. This increase was partly due to the impact of Trident, which added $8.5 million of expenses. Other increases, excluding Trident, included compensation and benefits expense of $6.6 million, primarily related to higher compensation and incentive costs, professional fees of $1.9 million, data processing expense of $1.5 million, and federal deposit insurance and regulatory assessments of $1.2 million, partly offset by a decrease in amortization of core deposit intangible of $734,000.
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Excluding non-core operations of $48,000, which favorably impacted operating expenses in the prior linked quarter, operating expenses for the quarter ended December 31, 2022 increased by $296,000 primarily due to an increase in professional fees of $2.2 million, partly offset by a decrease in data processing expense of $1.9 million.
Income Tax Expense
    The provision for income taxes was $17.4 million and $46.6 million for the quarter and year ended December 31, 2022, respectively, as compared to $4.1 million and $32.2 million, for the same prior year periods, and $12.3 million for the prior linked quarter. The effective tax rate was 24.6% and 24.0% for the quarter and year ended December 31, 2022, respectively, as compared to 15.3% and 22.6% for the same prior year periods, and 24.1% for the prior linked quarter. The lower effective tax rate for the quarter ended December 31, 2021, as compared to the current year periods and prior linked quarter, was primarily due to allocation of taxable income to jurisdictions other than New Jersey, which was tied to our commercial banking strategy, and other tax optimization efforts.
Financial Condition
    Total assets increased by $1.36 billion to $13.10 billion at December 31, 2022, from $11.74 billion at December 31, 2021. Total loans increased by $1.30 billion to $9.92 billion at December 31, 2022, from $8.62 billion at December 31, 2021, due to strong loan originations and to a lesser extent, residential loan pool purchases. Total debt securities decreased by $28.7 million at December 31, 2022, as compared to December 31, 2021, primarily due to principal repayments and maturities, and to a lesser extent, an increase in unrealized losses driven by the rising rate environment. This was partly offset by purchases in the second half of the year, which included approximately $227 million of fixed rate bonds at amortized cost, with a weighted average life of 8.5 years and a weighted average yield of 5.1%, to provide stability to the Company’s net interest income position. Other assets increased by $74.1 million to $221.1 million at December 31, 2022 from $147.0 million at December 31, 2021, primarily due to an increase in market values associated with customer interest rate swap programs.
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    Total liabilities increased by $1.30 billion to $11.52 billion at December 31, 2022, from $10.22 billion at December 31, 2021. FHLB advances increased to $1.21 billion at December 31, 2022 from $0 at December 31, 2021 to fund liquidity needs, as deposits decreased by $57.6 million during this period from $9.73 billion to $9.68 billion. Total deposits, excluding time deposits, decreased by $824.6 million to $8.13 billion at December 31, 2022, from $8.96 billion at December 31, 2021, due to the net runoff of non-interest-bearing and interest-bearing checking balances. Time deposits increased to $1.54 billion, or 15.9% of total deposits, at December 31, 2022, from $775.0 million, or 8.0% of total deposits, at December 31, 2021, primarily due to an increase in brokered time deposits. The loans-to-deposit ratio at December 31, 2022 was 102.5%, as compared to 88.6% at December 31, 2021. Other borrowings also decreased by $33.7 million to $195.4 million at December 31, 2022, from $229.1 million at December 31, 2021, primarily due to the extinguishment of $35.0 million of subordinated debt in March 2022.
Other liabilities increased by $224.1 million to $346.2 million at December 31, 2022, from $122.0 million at December 31, 2021, primarily due to an increase in the market values associated with customer interest rate swap programs and related collateral received from counterparties.
    Stockholders’ equity increased to $1.59 billion at December 31, 2022, as compared to $1.52 billion at December 31, 2021. Accumulated other comprehensive loss increased by $33.2 million to $36.0 million at December 31, 2022 from $2.8 million at December 31, 2021, primarily due to unrealized losses on debt securities available-for-sale, which were adversely impacted by the rising interest rate environment. For the year ended December 31, 2022, the Company repurchased 373,223 shares totaling $7.4 million under its stock repurchase program at a weighted average cost of $19.82. There were 2,934,438 shares available for repurchase at December 31, 2022 under the existing repurchase program. Stockholders’ equity per common share increased to $26.81 at December 31,
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2022, as compared to $25.63 at December 31, 2021. Tangible common equity per common share2 increased to $17.08 at December 31, 2022, as compared to $15.93 at December 31, 2021.
Asset Quality
    The Company’s non-performing loans decreased to $23.3 million at December 31, 2022, as compared to $25.5 million at December 31, 2021. The Company’s non-performing loans, excluding $3.9 million and $6.5 million of non-performing purchased with credit deterioration (“PCD”) loans from prior bank acquisitions at December 31, 2022 and 2021, respectively, increased to $19.3 million at December 31, 2022, as compared to $18.9 million at December 31, 2021. The allowance for loan credit losses as a percentage of total non-performing loans was 244.25% at December 31, 2022, as compared to 191.61% at December 31, 2021. The allowance for loan credit losses as a percentage of total non-performing loans, excluding PCD loans, was 294.10% at December 31, 2022, as compared to 257.81% at December 31, 2021. The level of 30 to 89 days delinquent loans improved to $14.1 million at December 31, 2022, from $14.5 million at December 31, 2021. The level of 30 to 89 days delinquent loans, excluding non-performing and PCD loans, improved to $10.5 million at December 31, 2022, from $13.5 million at December 31, 2021.
The Company’s allowance for loan credit losses was 0.57% of total loans at both December 31, 2022 and 2021. The allowance for loan credit losses plus the unamortized credit and PCD marks amounted to $68.2 million, or 0.69% of total loans, at December 31, 2022, as compared to $67.8 million, or 0.79% of total loans at December 31, 2021.
2 Tangible common equity per common share, a non-GAAP financial measure, excludes the impact of intangible assets, goodwill, and preferred equity from stockholders’ equity. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.
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Explanation of Non-GAAP Financial Measures
    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and credit loss provision, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, which can vary from period to period, provides a better comparison of period-to-period operating performance. In addition, a non-GAAP table has been presented excluding the results associated with the acquisition of a majority interest in Trident for better comparison period over period. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.
Annual Meeting
The Company also announced today that its Annual Meeting of Stockholders will be held on Tuesday, May 23, 2023 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, April 4, 2023. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.
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Conference Call
    As previously announced, the Company will host an earnings conference call on Friday, January 20, 2023 at 11:00 a.m. Eastern Time. The direct dial number for the call is 1-844-200-6205, toll free, using the access code 433036. For those unable to participate in the conference call, a replay will be available. To access the replay, dial 1-866-813-9403, access code 427414, from one hour after the end of the call until April 20, 2023. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com - in the Investor Relations section.
* * *
    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.1 billion regional bank providing financial services throughout New Jersey and in the major metropolitan markets of Philadelphia, New York, Baltimore, and Boston. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.


Forward-Looking Statements
    
In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” “will,” “should,” “may,” “view,” “opportunity,” “potential,” or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: implications arising from the termination of the proposed merger with Partners Bancorp, including reputational risks and potential adverse effects on the ability to attract other merger partners; the impact of the COVID-19 pandemic or any other pandemic on our operations and financial results and those of our customers, changes in interest rates, inflation, general economic conditions, potential recessionary conditions, levels of unemployment in the Bank’s lending area, real estate market values in the Bank’s lending area, future natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and savings habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, under Item 1A - Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)
December 31, 2022September 30, 2022December 31, 2021
(Unaudited)(Unaudited)
Assets
Cash and due from banks
$167,946 $170,668 $204,949 
Debt securities available-for-sale, at estimated fair value
457,648 470,300 568,255 
Debt securities held-to-maturity, net of allowance for securities credit losses of $1,128 at December 31, 2022, $1,234 at September 30, 2022, and $1,467 at December 31, 2021 (estimated fair value of $1,110,041 at December 31, 2022, $905,426 at September 30, 2022, and $1,152,744 at December 31, 2021)
1,221,138 1,027,712 1,139,193 
Equity investments102,037 81,722 101,155 
Restricted equity investments, at cost
109,278 77,556 53,195 
Loans receivable, net of allowance for loan credit losses of $56,824 at December 31, 2022, $53,521 at September 30, 2022, and $48,850 at December 31, 2021
9,868,718 9,672,488 8,583,352 
Loans held-for-sale
690 3,549 — 
Interest and dividends receivable
44,704 38,388 32,606 
Other real estate owned
— — 106 
Premises and equipment, net
126,705 127,868 125,828 
Bank owned life insurance261,603 261,118 259,207 
Assets held for sale
2,719 3,216 6,229 
Goodwill
506,146 506,146 500,319 
Core deposit intangible
13,497 14,656 18,215 
Other assets221,067 228,066 147,007 
Total assets
$13,103,896 $12,683,453 $11,739,616 
Liabilities and Stockholders’ Equity
Deposits
$9,675,206 $9,959,469 $9,732,816 
Federal Home Loan Bank advances
1,211,166 514,200 — 
Securities sold under agreements to repurchase with customers69,097 96,289 118,769 
Other borrowings
195,403 194,914 229,141 
Advances by borrowers for taxes and insurance
21,405 25,457 20,305 
Other liabilities
346,155 352,908 122,032 
Total liabilities
11,518,432 11,143,237 10,223,063 
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity1,584,662 1,539,253 1,516,553 
Non-controlling interest802 963 — 
Total stockholders’ equity
1,585,464 1,540,216 1,516,553 
Total liabilities and stockholders’ equity
$13,103,896 $12,683,453 $11,739,616 
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OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
For the Three Months EndedFor the Year Ended
December 31,September 30,December 31,December 31,
20222022202120222021
|--------------------- (Unaudited) ---------------------|(Unaudited)
Interest income:
Loans$117,046 $100,141 $81,392 $390,386 $315,237 
Debt securities10,951 8,479 5,654 34,407 22,033 
Equity investments and other2,280 1,879 1,411 6,382 4,822 
Total interest income130,277 110,499 88,457 431,175 342,092 
Interest expense:
Deposits13,425 9,238 5,010 31,021 25,210 
Borrowed funds10,364 5,296 2,861 22,677 11,544 
Total interest expense23,789 14,534 7,871 53,698 36,754 
Net interest income106,488 95,965 80,586 377,477 305,338 
Credit loss expense (benefit)3,647 1,016 (1,573)7,768 (11,832)
Net interest income after credit loss expense (benefit)102,841 94,949 82,159 369,709 317,170 
Other income:
Bankcard services revenue1,437 1,509 3,308 9,219 13,360 
Trust and asset management revenue551 568 562 2,386 2,336 
Fees and service charges5,776 6,320 3,314 22,802 13,833 
Net gain on sales of loans10 168 358 3,186 
Net gain (loss) on equity investments17,187 3,362 (1,252)9,685 7,145 
Net (loss) gain from other real estate operations— — (3)48 (15)
Income from bank owned life insurance1,697 1,356 2,061 6,578 6,832 
Commercial loan swap income519 1,471 1,323 7,065 4,095 
Other374 396 91 953 1,159 
Total other income27,551 15,150 9,410 59,094 51,931 
Operating expenses:
Compensation and employee benefits33,943 34,124 31,006 131,915 120,014 
Occupancy5,027 5,288 5,101 20,817 20,481 
Equipment1,131 1,150 1,435 4,987 5,443 
Marketing705 655 614 2,947 2,169 
Federal deposit insurance and regulatory assessments1,924 1,757 1,733 7,359 6,155 
Data processing4,629 6,560 7,774 23,095 21,570 
Check card processing1,243 1,231 1,170 4,971 5,182 
Professional fees4,697 2,502 2,726 12,993 11,043 
Amortization of core deposit intangible1,159 1,171 1,343 4,718 5,453 
Branch consolidation expense (benefit), net111 (346)7,286 713 12,337 
Merger related expenses276 298 451 2,735 1,503 
Other operating expense4,883 4,607 4,195 17,631 15,510 
Total operating expenses59,728 58,997 64,834 234,881 226,860 
Income before provision for income taxes70,664 51,102 26,735 193,922 142,241 
Provision for income taxes17,353 12,298 4,078 46,565 32,165 
Net income53,311 38,804 22,657 147,357 110,076 
Net income attributable to non-controlling interest39 193 — 754 — 
Net income attributable to OceanFirst Financial Corp.53,272 38,611 22,657 146,603 110,076 
Dividends on preferred shares1,004 1,004 1,004 4,016 4,016 
Net income available to common stockholders$52,268 $37,607 $21,653 $142,587 $106,060 
Basic earnings per share$0.89 $0.64 $0.37 $2.43 $1.79 
Diluted earnings per share$0.89 $0.64 $0.37 $2.42 $1.78 
Average basic shares outstanding58,584 58,681 58,801 58,730 59,406 
Average diluted shares outstanding58,751 58,801 59,044 58,878 59,649 

15



OceanFirst Financial Corp.
SELECTED LOAN AND DEPOSIT DATA
(dollars in thousands)
LOANS RECEIVABLEAt
December 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Commercial:
Commercial real estate - investor$5,171,952 $5,007,637 $4,808,965 $4,607,880 $4,378,061 
Commercial real estate - owner-occupied997,367 983,784 1,020,873 1,057,246 1,055,065 
Commercial and industrial622,372 652,620 584,464 502,739 449,224 
Total commercial6,791,691 6,644,041 6,414,302 6,167,865 5,882,350 
Consumer:
Residential real estate2,861,991 2,813,209 2,758,269 2,687,927 2,479,701 
Home equity loans and lines and other consumer (“other consumer”)264,372 261,510 252,314 253,184 260,819 
Total consumer3,126,363 3,074,719 3,010,583 2,941,111 2,740,520 
Total loans9,918,054 9,718,760 9,424,885 9,108,976 8,622,870 
Deferred origination costs (fees), net7,488 7,249 7,864 7,301 9,332 
Allowance for loan credit losses(56,824)(53,521)(52,061)(50,598)(48,850)
Loans receivable, net$9,868,718 $9,672,488 $9,380,688 $9,065,679 $8,583,352 
Mortgage loans serviced for others$51,736 $53,869 $56,045 $58,089 $60,447 
At December 31, 2022 Average Yield
Loan pipeline (1):
Commercial6.53 %$114,232 $339,487 $273,843 $385,986 $539,426 
Residential real estate
6.10 36,958 80,591 104,920 116,554 123,211 
Other consumer5.95 14,890 19,395 6,278 12,814 8,381 
Total6.38 %$166,080 $439,473 $385,041 $515,354 $671,018 
For the Three Months Ended
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Average Yield
Loan originations:
Commercial6.32 %$539,949 $356,726 $645,863 $816,517 $780,464 
Residential real estate5.48 101,530 
(2)
129,808 173,365 192,721 
(2)
195,942 
(2)
Other consumer5.28 42,624 57,254 16,253 12,718 12,552 
Total6.13 %$684,103 $543,788 $835,481 $1,021,956 $988,958 
Loans sold$2,340 $9,425 
(3)
$— $703 
(4)
$649 
(1) Loan pipeline includes loans approved but not funded.
(2) Excludes residential real estate loan pool purchases of $9.9 million, $161.7 million and $82.2 million for the three months ended December 31, 2022, March 31, 2022 and December 31, 2021, respectively.
(3) Excludes the sale of a small business administration loan of $1.2 million for the three months ended September 30, 2022.
(4) Excludes the sale of higher risk commercial loans of $12.0 million for the three months ended March 31, 2022.

DEPOSITSAt
December 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Type of Account
Non-interest-bearing$2,101,308 $2,325,547 $2,312,126 $2,444,833 $2,412,056 
Interest-bearing checking3,829,683 3,909,864 3,696,067 4,287,745 4,201,736 
Money market714,386 749,229 716,782 811,588 736,090 
Savings1,487,809 1,570,472 1,606,534 1,624,751 1,607,933 
Time deposits1,542,020 1,404,357 1,499,975 887,316 775,001 
Total deposits$9,675,206 $9,959,469 $9,831,484 $10,056,233 $9,732,816 
16



OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)
ASSET QUALITYDecember 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Non-performing loans:
Commercial real estate - investor
$10,483 $9,866 $2,609 $3,575 $3,614 
Commercial real estate - owner-occupied
4,025 1,976 8,233 9,632 11,904 
Commercial and industrial
331 321 364 2,830 277 
Residential real estate
5,969 5,958 5,846 7,047 6,114 
Other consumer2,457 3,377 3,701 3,841 3,585 
Total non-performing loans23,265 21,498 20,753 26,925 25,494 
Other real estate owned
— — — 106 106 
Total non-performing assets
$23,265 $21,498 $20,753 $27,031 $25,600 
Delinquent loans 30 to 89 days
$14,148 $11,846 $9,558 $18,691 $14,546 
Troubled debt restructuring (“TDR”):
Non-performing (included in total non-performing loans above)
$6,361 $10,047 $10,493 $11,914 $11,311 
Performing
7,530 6,065 6,946 7,716 12,320 
Total TDRs$13,891 $16,112 $17,439 $19,630 $23,631 
Allowance for loan credit losses$56,824 $53,521 $52,061 $50,598 $48,850 
Allowance for loan credit losses as a percent of total loans receivable (1)
0.57 %0.55 %0.55 %0.56 %0.57 %
Allowance for loan credit losses as a percent of total non-performing loans (1)
244.25 248.96 250.86 187.92 191.61 
Non-performing loans as a percent of total loans receivable0.23 0.22 0.22 0.30 0.30 
Non-performing assets as a percent of total assets
0.18 0.17 0.17 0.22 0.22 
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses$27,129 $29,249 $35,227 $37,032 $41,817 
Non-performing PCD loans3,944 3,043 3,529 3,745 6,546 
Delinquent PCD and non-performing loans 30 to 89 days3,657 1,434 1,381 2,749 1,000 
TDR PCD loans765 715 997 1,033 337 
Asset quality, excluding PCD loans (2)
Non-performing loans19,321 18,455 17,224 23,180 18,948 
Non-performing assets19,321 18,455 17,224 23,286 19,054 
Delinquent loans 30 to 89 days (excludes non-performing loans)
10,491 10,412 8,177 15,942 13,546 
TDRs
13,126 15,397 16,442 18,597 23,294 
Allowance for loan credit losses as a percent of total non-performing loans (1)
294.10 %290.01 %302.26 %218.28 %257.81 %
Non-performing loans as a percent of total loans receivable
0.19 0.19 0.18 0.25 0.22 
Non-performing assets as a percent of total assets0.15 0.15 0.14 0.19 0.16 
(1) Loans acquired from prior bank acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $11.4 million, $13.6 million, $15.5 million, $16.9 million, and $18.9 million at December 31, 2022, September 30, 2022, June 30, 2022, March 31, 2022, and December 31, 2021, respectively.
(2) All balances and ratios exclude PCD loans.
17


NET LOAN RECOVERIES (CHARGE-OFFS)For the Three Months Ended
December 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Net loan recoveries (charge-offs):
Loan charge-offs$(138)$(5)$(287)$(143)$(92)
Recoveries on loans143 257 278 235 111 
Net loan recoveries (charge-offs)$$252 $(9)$92 $19 
Net loan recoveries (charge-offs) to average total loans (annualized)NM*NM*— %NM*NM*
Net loan recoveries (charge-offs) detail:
Commercial$(46)$117 $154 $25 $(24)
Residential real estate44 (47)94 21 
Other consumer42 91 (116)(27)22 
Net loan recoveries (charge-offs) $$252 $(9)$92 $19 
* Not meaningful as amounts are net loan recoveries.


18



OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME
 For the Three Months Ended
 December 31, 2022September 30, 2022December 31, 2021
(dollars in thousands)Average
Balance
Interest
Average
Yield/
Cost (1)
Average
Balance
Interest
Average
Yield/
Cost (1)
Average
Balance
Interest
Average
Yield/
Cost (1)
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$70,023 $634 3.59 %$65,648 $336 2.03 %$698,652 $300 0.17 %
Securities (2)
1,764,764 12,597 2.83 1,748,687 10,022 2.27 1,710,143 6,765 1.57 
Loans receivable, net (3)
Commercial6,715,896 88,991 5.26 6,509,515 74,309 4.53 5,635,642 57,829 4.07 
Residential real estate2,841,073 24,532 3.45 2,791,067 22,818 3.27 2,430,635 20,454 3.37 
Other consumer262,911 3,523 5.32 256,638 3,014 4.66 273,007 3,109 4.52 
Allowance for loan credit losses, net of deferred loan costs and fees(48,776)— — (44,773)— — (41,889)— — 
Loans receivable, net9,771,104 117,046 4.76 9,512,447 100,141 4.18 8,297,395 81,392 3.89 
Total interest-earning assets11,605,891 130,277 4.46 11,326,782 110,499 3.88 10,706,190 88,457 3.28 
Non-interest-earning assets1,228,520 1,191,173 1,247,420 
Total assets$12,834,411 $12,517,955 $11,953,610 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking$3,989,403 4,911 0.49 %$3,873,968 2,671 0.27 %$4,249,001 2,851 0.27 %
Money market738,637 917 0.49 793,230 721 0.36 790,471 282 0.14 
Savings1,539,175 285 0.07 1,603,147 187 0.05 1,611,522 141 0.03 
Time deposits1,486,410 7,312 1.95 1,467,297 5,659 1.53 819,025 1,736 0.84 
Total7,753,625 13,425 0.69 7,737,642 9,238 0.47 7,470,019 5,010 0.27 
FHLB advances632,207 6,475 4.06 352,392 2,208 2.49 — — — 
Securities sold under agreements to repurchase88,191 41 0.18 96,147 35 0.14 132,520 50 0.15 
Other borrowings195,167 3,848 7.82 194,755 3,053 6.22 228,980 2,811 4.87 
Total borrowings915,565 10,364 4.49 643,294 5,296 3.27 361,500 2,861 3.14 
Total interest-bearing liabilities8,669,190 23,789 1.09 8,380,936 14,534 0.69 7,831,519 7,871 0.40 
Non-interest-bearing deposits2,221,884 2,328,700 2,467,588 
Non-interest-bearing liabilities378,481 266,564 134,527 
Total liabilities11,269,555 10,976,200 10,433,634 
Stockholders’ equity
1,564,856 1,541,755 1,519,976 
Total liabilities and equity$12,834,411 $12,517,955 $11,953,610 
Net interest income$106,488 $95,965 $80,586 
Net interest rate spread (4)
3.37 %3.19 %2.88 %
Net interest margin (5)
3.64 %3.36 %2.99 %
Total cost of deposits (including non-interest-bearing deposits)0.53 %0.36 %0.20 %

(footnotes on following page)





19



(continued)
 For the Year Ended
 December 31, 2022December 31, 2021
(dollars in thousands)Average
Balance
InterestAverage
Yield/
Cost
Average
Balance
InterestAverage
Yield/
Cost
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments$72,913 $1,106 1.52 %$969,982 $1,258 0.13 %
Securities (2)
1,792,598 39,683 2.21 1,517,649 25,597 1.69 
Loans receivable, net (3)
Commercial6,386,755 287,044 4.49 5,362,265 221,144 4.12 
Residential real estate2,724,398 91,432 3.36 2,309,790 79,696 3.45 
Other consumer256,912 11,910 4.64 298,193 14,397 4.83 
Allowance for loan credit losses, net of deferred loan costs and fees(44,446)— — (48,637)— — 
Loans receivable, net9,323,619 390,386 4.19 7,921,611 315,237 3.98 
Total interest-earning assets11,189,130 431,175 3.85 10,409,242 342,092 3.29 
Non-interest-earning assets1,200,725 1,260,079 
Total assets$12,389,855 $11,669,321 
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest-bearing checking$4,063,716 11,344 0.28 %$3,878,465 13,400 0.35 %
Money market764,837 2,234 0.29 769,157 1,105 0.14 
Savings1,597,648 758 0.05 1,581,472 631 0.04 
Time deposits1,167,499 16,685 1.43 985,328 10,074 1.02 
Total7,593,700 31,021 0.41 7,214,422 25,210 0.35 
FHLB advances389,750 10,365 2.66 — — — 
Securities sold under agreements to repurchase101,377 159 0.16 134,939 253 0.19 
Other borrowings203,117 12,153 5.98 228,600 11,291 4.94 
Total borrowings694,244 22,677 3.27 363,539 11,544 3.18 
Total interest-bearing liabilities8,287,944 53,698 0.65 7,577,961 36,754 0.49 
Non-interest-bearing deposits2,319,657 2,429,547 
Non-interest-bearing liabilities239,861 151,950 
Total liabilities10,847,462 10,159,458 
Stockholders’ equity
1,542,393 1,509,863 
Total liabilities and equity$12,389,855 $11,669,321 
Net interest income$377,477 $305,338 
Net interest rate spread (4)
3.20 %2.80 %
Net interest margin (5)
3.37 %2.93 %
Total cost of deposits (including non-interest-bearing deposits)0.31 %0.26 %
(1)    Average yields and costs are annualized.
(2)    Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
(3)    Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
(4)    Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
(5)    Net interest margin represents net interest income divided by average interest-earning assets.

20



OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)
December 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Selected Financial Condition Data:
Total assets$13,103,896 $12,683,453 $12,438,653 $12,164,945 $11,739,616 
Debt securities available-for-sale, at estimated fair value457,648 470,300 507,276 546,470 568,255 
Debt securities held-to-maturity, net of allowance for securities credit losses1,221,138 1,027,712 1,068,034 1,099,514 1,139,193 
Equity investments102,037 81,722 75,269 93,888 101,155 
Restricted equity investments, at cost109,278 77,556 76,047 56,704 53,195 
Loans receivable, net of allowance for loan credit losses9,868,718 9,672,488 9,380,688 9,065,679 8,583,352 
Deposits9,675,206 9,959,469 9,831,484 10,056,233 9,732,816 
Federal Home Loan Bank advances1,211,166 514,200 488,750 75,002 — 
Securities sold under agreements to repurchase and other borrowings264,500 291,203 300,149 312,178 347,910 
Total stockholders’ equity1,585,464 1,540,216 1,521,432 1,519,334 1,516,553 

For the Three Months Ended
December 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Selected Operating Data:
Interest income$130,277 $110,499 $99,416 $90,983 $88,457 
Interest expense23,789 14,534 8,619 6,756 7,871 
Net interest income106,488 95,965 90,797 84,227 80,586 
Credit loss expense (benefit)3,647 1,016 1,254 1,851 (1,573)
Net interest income after credit loss expense (benefit)102,841 94,949 89,543 82,376 82,159 
Other income (excluding net gain (loss) on equity investments)10,364 11,788 15,619 11,638 10,662 
Net gain (loss) on equity investments17,187 3,362 (8,078)(2,786)(1,252)
Operating expenses (excluding merger related and branch consolidation expense (benefit), net)59,341 59,045 57,919 55,128 57,097 
Branch consolidation expense (benefit), net111 (346)546 402 7,286 
Merger related expenses276 298 196 1,965 451 
Income before provision for income taxes70,664 51,102 38,423 33,733 26,735 
Provision for income taxes17,353 12,298 8,940 7,974 4,078 
Net income53,311 38,804 29,483 25,759 22,657 
Net income attributable to non-controlling interest39 193 522 — — 
Net income attributable to OceanFirst Financial Corp.$53,272 $38,611 $28,961 $25,759 $22,657 
Net income available to common stockholders$52,268 $37,607 $27,957 $24,755 $21,653 
Diluted earnings per share$0.89 $0.64 $0.47 $0.42 $0.37 
Net accretion/amortization of purchase accounting adjustments included in net interest income$2,278 $2,004 $2,196 $2,953 $3,610 











21


(continued)
At or For the Three Months Ended
December 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Selected Financial Ratios and Other Data (1) (2):
Performance Ratios (Annualized):
Return on average assets (3)
1.62 %1.19 %0.92 %0.84 %0.72 %
Return on average tangible assets (3) (4)
1.68 1.24 0.96 0.88 0.75 
Return on average stockholders' equity (3)
13.25 9.68 7.31 6.57 5.65 
Return on average tangible stockholders' equity (3) (4)
19.85 14.62 11.08 9.94 8.59 
Return on average tangible common equity (3) (4)
20.97 15.47 11.72 10.52 9.09 
Stockholders' equity to total assets12.10 12.14 12.23 12.49 12.92 
Tangible stockholders' equity to tangible assets (4)
8.47 8.38 8.39 8.60 8.89 
Tangible common equity to tangible assets (4)
8.03 7.92 7.92 8.13 8.40 
Net interest rate spread3.37 3.19 3.18 3.08 2.88 
Net interest margin3.64 3.36 3.29 3.18 2.99 
Operating expenses to average assets1.85 1.87 1.92 1.95 2.15 
Efficiency ratio (5)
44.56 53.10 59.65 61.77 72.04 
Loans-to-deposits102.50 97.60 95.90 90.60 88.60 
At or For the Year Ended December 31,
20222021
Performance Ratios:
Return on average assets (3)
1.15 %0.91 %
Return on average tangible assets (3) (4)
1.20 0.95 
Return on average stockholders' equity (3)
9.24 7.02 
Return on average tangible stockholders' equity (3) (4)
13.96 10.73 
Return on average tangible common equity (3) (4)
14.76 11.37 
Net interest rate spread3.20 2.80 
Net interest margin3.37 2.93 
Operating expenses to average assets1.90 1.94 
Efficiency ratio (5)
53.80 63.50 


















22


(continued)
At or For the Three Months Ended
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)$324,066 $273,815 $279,222 $296,818 $287,404 
Nest Egg AUA/M403,538 402,256 398,344 415,478 428,558 
Total AUA/M727,604 676,071 677,566 712,296 715,962 
Per Share Data:
Cash dividends per common share$0.20 $0.20 $0.17 $0.17 $0.17 
Stockholders’ equity per common share at end of period26.81 26.04 25.73 25.58 25.63 
Tangible common equity per common share at end of period (4)
17.08 16.30 15.96 15.94 15.93 
Common shares outstanding at end of period59,144,128 59,138,507 59,130,23659,388,98359,175,046 
Preferred shares outstanding at end of period57,370 57,370 57,370 57,370 57,370 
Number of full-service customer facilities:38 38 38 38 47 
Quarterly Average Balances
Total securities$1,764,764 $1,748,687 $1,811,869 $1,846,452 $1,710,143 
Loans receivable, net9,771,104 9,512,447 9,204,583 8,796,861 8,297,395 
Total interest-earning assets11,605,891 11,326,782 11,083,892 10,732,139 10,706,190 
Total goodwill and core deposit intangible520,400 521,566 522,666 518,106 519,401 
Total assets12,834,411 12,517,955 12,251,985 11,947,210 11,953,610 
Time deposits1,486,410 1,467,297 937,387 767,709 819,025 
Total deposits (including non-interest-bearing deposits)9,975,509 10,066,342 9,665,200 9,944,352 9,937,607 
Total borrowings915,565 643,294 837,164 375,578 361,500 
Total interest-bearing liabilities8,669,190 8,380,936 8,174,240 7,918,133 7,831,519 
Non-interest bearing deposits2,221,884 2,328,700 2,328,124 2,401,797 2,467,588 
Stockholders’ equity1,564,856 1,541,755 1,534,721 1,527,839 1,519,976 
Tangible stockholders’ equity (4)
1,044,456 1,020,189 1,012,055 1,009,733 1,000,575 
Quarterly Yields and Costs
Total securities2.83 %2.27 %1.90 %1.86 %1.57 %
Loans receivable, net4.76 4.18 3.95 3.79 3.89 
Total interest-earning assets4.46 3.88 3.60 3.43 3.28 
Time deposits1.95 1.53 0.97 0.77 0.84 
Total cost of deposits (including non-interest-bearing deposits)0.53 0.36 0.18 0.16 0.20 
Total borrowed funds4.49 3.27 2.06 2.93 3.14 
Total interest-bearing liabilities1.09 0.69 0.42 0.35 0.40 
Net interest spread3.37 3.19 3.18 3.08 2.88 
Net interest margin3.64 3.36 3.29 3.18 2.99 
(1)    With the exception of end of quarter ratios, all ratios are based on average daily balances.
(2)    Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
(3)    Ratios for each period are based on net income available to common stockholders.
(4) Tangible stockholders’ equity and tangible assets exclude intangible assets related to goodwill and core deposit intangible. Tangible common equity excludes goodwill, core deposit intangible and preferred equity. Refer to “Non-GAAP Reconciliation.”
(5)    Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.





23



OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION
For the Three Months Ended
December 31, 2022September 30,
2022
June 30,
2022
March 31,
2022
December 31,
2021
Core Earnings:
Net income available to common stockholders (GAAP)
$52,268 $37,607 $27,957 $24,755 $21,653 
Add (less) non-recurring and non-core items:
Merger related expenses276 298 196 1,965 451 
Branch consolidation expense (benefit), net (1)
111 (346)546 402 7,286 
Net (gain) loss on equity investments(17,187)(3,362)8,078 2,786 1,252 
Income tax expense (benefit) on items4,060 824 (2,132)(1,141)(2,144)
Core earnings (Non-GAAP)
$39,528 $35,021 $34,645 $28,767 $28,498 
Income tax expense$17,353 $12,298 $8,940 $7,974 $4,078 
Credit loss expense (benefit)3,647 1,016 1,254 1,851 (1,573)
Less: income tax expense (benefit) on non-core items4,060 824 (2,132)(1,141)(2,144)
Core earnings PTPP (Non-GAAP)
$56,468 $47,511 $46,971 $39,733 $33,147 
Core diluted earnings per share$0.67 $0.60 $0.59 $0.49 $0.48 
Core earnings PTPP diluted earnings per share$0.96 $0.81 $0.80 $0.67 $0.56 
Core Ratios (Annualized):
Return on average assets1.22 %1.11 %1.13 %0.98 %0.95 %
Return on average tangible stockholders’ equity15.01 13.62 13.73 11.55 11.30 
Return on average tangible common equity15.86 14.40 14.53 12.23 11.96 
Efficiency ratio50.78 54.80 54.43 57.51 62.57 
(1) Includes $2.0 million of gains related to the sale of two branches for the three months ended December 31, 2021.
24


(continued)
For the Years Ended December 31,
20222021
Core Earnings:
Net income available to common stockholders (GAAP)
$142,587 $106,060 
Add (less) non-recurring and non-core items:
Merger related expenses2,735 1,503 
Branch consolidation expense, net (1)
713 12,337 
Net gain on equity investments(9,685)(7,145)
Income tax expense (benefit) on items1,611 (1,590)
Core earnings (Non-GAAP)
$137,961 $111,165 
Income tax expense$46,565 $32,165 
Credit loss expense (benefit)7,768 (11,832)
Less: income tax expense (benefit) on non-core items1,611 (1,590)
Core earnings PTPP (Non-GAAP)
$190,683 $133,088 
Core diluted earnings per share$2.34 $1.86 
Core earnings PTPP diluted earnings per share$3.24 $2.23 
Core Ratios:
Return on average assets1.11 %0.95 %
Return on average tangible stockholders’ equity13.50 11.25 
Return on average tangible common equity14.28 11.92 
Efficiency ratio54.21 60.84 
(1) Includes $2.0 million of gains related to the sale of two branches for the year ended December 31, 2021.
25


(continued)
December 31,September 30,June 30,March 31,December 31,
20222022202220222021
Tangible Equity:
Total stockholders' equity$1,585,464 $1,540,216 $1,521,432 $1,519,334 $1,516,553 
Less:
Goodwill506,146 506,146 506,146 500,319 500,319 
Core deposit intangible